When I run the Service Pack on our PPM 8.03 test instance I initially received an error saying it could not make changes to the USERS tablespace. Our DBAs are asking why it wants to make changes to a general Oracle tablespace vs. PPM's area only. Any ideas?

Once we cleared the USERS tablespace error by extending permissions we got a missing Index error. I'm assuming it deleting indexes on the first try then couldn't find them on the second try.

I think there is a confusion about PPM tablespaces and its users(schemes) and permissions. You don't use correct user with permission for tablespaces. So SP4 give error. When you extend permission you can do what you want to USERS but than other one give error.

Could you please check current tablespaces, users and permissions. You know, correct permissions could give by below PPM scripts: